Chapter 4-HRD Initiatives, Retenton Strategies and HRD Audit

CHAPTER 4
HRD initiatives, Retention strategies,

and audit.
Learning Outcome 4
• Explain the HRD initiatives, Retention strategies,

and audit
Chapter Outline
Human Resource Initiatives

HR Strategic initiatives
HR tactical initiatives
Where to focus more – HR Strategic initiatives or HR tactical initiatives?
HRD Audit
HRD Initiatives
HR teams all over the world work hard to make sure that employees
are equipped and empowered to help their company achieve its
objectives.
As such, Human Resources departments have to come up not only

with a solid HR strategy but also with innovative HR initiatives to
support this.
HR Strategic Initiatives or HR Tactical Initiative - Where to focus? (synergita.com)

HR Strategic initiatives
HR Strategic initiatives are those initiatives / activities that
consider people as its primary assets and define plans in such a way
that use these assets in the most appropriate manner in order to
achieve the organizations’ business goals or objectives.
(Compensation plan, Recruitment plan, Employee development plan)
Strategic HR formulates HR plans in a way that they are in alignment

to the organizations’ business plans.
HR Tactical initiatives?
HR Tactical initiatives / activities indicate more routine and operational activities
that enable normal and smooth functioning of day-to-day operations in an
organization.
( Writing job description, Process new hiring forms, implementing company policies)
Such activities are more focused internally and benefit specific individuals or groups of
individuals within the organization.
However, if we lose focus on these essential activities, there is nothing but trouble
ahead.
Where to focus more – HR Strategic initiatives or HR tactical
initiatives?
The balancing act:
Although it is evident that the focus should be primarily on HR

Strategic initiatives, the key is to also not lose focus on the tactical
activities of HR.
A typical Strategic initiative would be to put the necessary process and

systems in place in order to ensure that the tactical activities happen
flawlessly so that HR can focus more on strategic planning.

HR Initiatives That Increase Employee Engagement
1. Create A Fun Environment
2. Develop Goal-Setting Programs
3. Begin When Recruiting
4. Collect Employee Feedback
https://blog.textmarks.com/4-hr-initiatives-that-increase-employee-engagement/
https://www.google.com/search?q=HR+Initiatives&sca_esv=582023809&rlz=1C1GCEU_enOM1079OM1079&tbm=isch&sourc
e=lnms&sa=X&ved=2ahUKEwiJgcLT6sGCAxWf_7sIHWbWCrYQ_AUoAXoECAEQAw&biw=1920&bih=963&dpr=1#imgrc
=55joFiTHTv1ktM&imgdii=ZKlV_bckAJ6H7M
Why do people leave an organization?
Research shows that employees primarily leave organizations

for the reasons listed below:
• Constant friction with peers or superiors
• Undesirable remuneration
• Little room for growth
• Lack of motivation
• Pregnancy and family requirements
• Clash of values
• Lack of engagement
BUSSIN, M. Retention Strategies : The Key to Attracting and Retaining Excellent Employees. Randburg [South Africa]: KR Publishing, 2018. ISBN 9781869227678. Disponível em:
https://search-ebscohost-com.masader.idm.oclc.org/login.aspx?direct=true&db=e000xww&AN=1944997&site=eds-live. Acesso em: 7 out. 2023. p12
Reasons to retain employees
• Competition
After an employee leaves an organization, they
return to the job market. This is unfavorable for the
organization left behind as it has allocated ample
resources and time to developing the employee who
often goes to work for a competitor organization.
• Time lost
Once a new employee is hired, both time and
resources need to be allocated to assist the new hire
to learn the ways of the organization. Time and
training is therefore reallocated to the employee as
opposed to focusing on clients and the overall
organizational objectives.
• Employee adaptability
Employees who work for an organization for a long period of
time have strong familiarity with the policies and practices of
the company, therefore they are able to adjust better to the
job demands.
• Loyalty
Individuals who remain at an organization for longer are more
loyal to both the company and the management thereof, due
to the benefits they have received from the organization.
• Talent
Innovative, hardworking, talented employees who can think
out the box are what allow the organization to remain
competitive. Key talent is difficult to source, thus when it is,
it is important to retain.
Retention strategies
Employees are the building blocks of each and every

organization. They carry out the day-to-day operations
of the organization, performing the necessary tasks and
maintaining the necessary relationships.
No organization can function efficiently without its
dedicated, hard-working employees; an incredible
amount of time and resources are allocated to
recruiting these employees.
For this reason, every organization should have
retention strategies in place.
The following is a guide to developing the most
effective retention strategy for your organization:
1. Hire the right people from the beginning:
An interview can provide you with knowledge regarding
whether an individual is the best fit for your organization.
2. Provide a well-defined career path:

By mapping out a well-defined career path, employees have
the ability to understand their prospects at the organization.
Understanding one’s options allows for security and stability.
3. Offer a great total rewards package:

Remuneration is, for some people, one of the largest factors of
employee retention. An attractive reward package takes salaries,
wages, bonuses, leave, shares, work-life balance, career, and
other such aspects.
4. Offer opportunities for advancement, training and growth
An organization should provide training, not only for employees’
current roles but also for cross functional growth, so they can
develop new skills and perform greater roles within the
organization.
5. Offer work-life effectiveness
Flexi-time is becoming increasingly common. This allows an
employee to work in the hours they are most productive, from
where they most desire. Organizations that offer flexibility are
those that have the highest retention rates.
6. Afford job security
In the current working world, downsizing, mergers, acquisitions
and layoffs are increasingly common, reducing job security.
Organizations that offer job security are thus those that succeed.
HRD Audit – Introduction
• HRD audit means the systematic verification of job analysis and
design, recruitment and selection, direction and placement,
training performance appraisal and job evaluation of the HR of
the organization.
• HRD audit is useful to achieve the organizational goal and is a

vital tool which helps to assess the effectiveness of HR functions
of an organization and helps company remain competitive.
HRD Audit: Introduction, Characteristics, Objective, Role and Benefits (economicsdiscussion.net)
Main Objectives of HRD Audit
(i) To determine the effectiveness of management programs
which facilitate management to develop allocate and monitor
human resources.
(ii) To analyze the factors and recommend for correcting

deviation’s viz. the extent of deviation from HRD policies / intent
of objectives spelt out / achievement of performance standards
Main Objectives of HRD Audit
(iii) To seek explanations and information and answer questions
like what happened / why it happened.
(iv) To the extent, to which managers have complied with HRD

policies.
(v) To study the current manpower inventory and identify

shortfalls or excesses.
Aspects of HRD practices covered in HRD Audit
(i) Recruitment and employment
(ii) New employee orientation
(iii) Employee manual
(iv) HR policies and procedures

Aspects of HRD practices covered on HRD Audit
(v) Employee surveys
(vi) Exit interviews
(vii) Employee files and record keeping
(viii) Legal compliance

Role of HRD Auditor
• Improve HRD system.
• Recommend effective recruitment practice.
• Ensure effective implementation of training programs.
• Suggest ways to smoother industrial relations.
• Give suggestions for conflict resolution.
• Strengthen accountability through appraisal system.
• Make recommendation to modify the style of leadership and remove the blocks in
free flow of communication.
• Share his insight on developing the competencies of HR.
• Gives clarity on the role of HR department.

Types of Audit Reports
The HRD audit takeaway is a report that the auditors prepare and
submit authority of the organization.
The reports are primarily of two types:
a. Clean Report: is one which indicates the appreciative aspects of

the departments function.
b. Qualified Report: is the one which brings forth the gaps in

performance and therefore contains remarks and corrective measures.
Benefits of HRD Audit
• Involvement of Top Management
• Role Clarity of HRD and Line Managers
• Human Productivity and Strengths and Weaknesses
• Increase in Professionalism
• Create a Learning Organization
• Improvements in HR Systems
• Cost Effective Training
• Increased Focus on Competencies
Activity 1
You have recently started your practice as HRD consultant.
The CEO of a manufacturing company has offered you an
opportunity to conduct HRD audit in his company. Enlist the
procedure you would adopt.
Tapomoy Deb (2015) HRD Theory and Practice. New Delhi. Ane Books Pvt Ltd.
Activity 2
Once while you were passing unnoticed by your department
(HRD), you overheard one of your subordinates talking face to
face to a production supervisor as:
Production supervisor: What does HRD stand for?
HRD Personnel: It means human resource department
Production supervisor: Oh! I thought it is human resource
development
Being the HRD manager, what do you conclude from this
dialogue? What action plan do you intend to put into practice?
Activity 3
You have joined a traditional organization as HR manager. The organization
has workers, staff and managers who are essentially rank promotes with
low education and professional training programs. The CEO has the vision
of taking the organization from 45 million to 200 million per annum in a
span of three years through HRD programs. What specific systems and
strategies will put in place to realize the CEO’s vision?
Activity 4
You are a HRD consultant, recently a CEO of a merged organization
approaches you to help him in increasing productivity in his organization.
The merged organization’s employees are reeling heavily under FUD – fear,
uncertainty and distrust, as informed by the CEO. What strategic advice
you would like to give the CEO before embarking on productivity
improvement programs?
Glossary
• HR Plans - Human resource planning is a process that identifies current and
future human resources needs for an organization to achieve its goals.
• Tactical activities - Tactical planning is short term planning which takes into
account the current operations of an organization. The term can be used for the
planning of a few days, weeks or months depending on the type of business model
and pace of change required.
• Employee engagement - Employee engagement is a human resources (HR)
concept that describes the level of enthusiasm and dedication a worker feels toward
their job.
• Mentoring - Mentoring is a reciprocal and collaborative at-will relationship that
most often occurs between a senior and junior employee for the purpose of the
mentee’s growth, learning, and career development.
References
• HR Strategic Initiatives or HR Tactical Initiative - Where to focus? (synergita.com)
• 17 Successful Retention Strategies | Indeed.com
• T.V. Rao (1999) HRD Audit. New Delhi: Response Books
• HRD Audit: Introduction, Characteristics, Objective, Role and Benefits

(economicsdiscussion.net)
• https://blog.textmarks.com/4-hr-initiatives-that-increase-employee-engagement/
• Tapomoy Deb (2015) HRD Theory and Practice. New Delhi. Ane Books Pvt Ltd.
CONTACT INFORMATION:
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VERSION HISTORY
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CHAPTER 4

HRD initiatives, Retention strategies,

• Explain the HRD initiatives, Retention strategies,

Human Resource Initiatives

As such, Human Resources departments have to come up not only

HR Strategic Initiatives or HR Tactical Initiative - Where to focus? (synergita.com)

(Compensation plan, Recruitment plan, Employee development plan)

Strategic HR formulates HR plans in a way that they are in alignment

The balancing act:

Although it is evident that the focus should be primarily on HR

A typical Strategic initiative would be to put the necessary process and

HR Strategic Initiatives or HR Tactical Initiative - Where to focus? (synergita.com)

1. Create A Fun Environment

2. Develop Goal-Setting Programs

3. Begin When Recruiting

4. Collect Employee Feedback

Research shows that employees primarily leave organizations

Employees are the building blocks of each and every

2. Provide a well-defined career path:

3. Offer a great total rewards package:

• HRD audit is useful to achieve the organizational goal and is a

(ii) To analyze the factors and recommend for correcting

(iv) To the extent, to which managers have complied with HRD

(v) To study the current manpower inventory and identify

(i) Recruitment and employment

(ii) New employee orientation

(iii) Employee manual

(iv) HR policies and procedures

(v) Employee surveys

(vi) Exit interviews

(vii) Employee files and record keeping

(viii) Legal compliance

HRD Audit: Introduction, Characteristics, Objective, Role and Benefits (economicsdiscussion.net)

HRD Audit: Introduction, Characteristics, Objective, Role and Benefits (economicsdiscussion.net)

The reports are primarily of two types:

a. Clean Report: is one which indicates the appreciative aspects of

b. Qualified Report: is the one which brings forth the gaps in

• 17 Successful Retention Strategies | Indeed.com

• T.V. Rao (1999) HRD Audit. New Delhi: Response Books

• HRD Audit: Introduction, Characteristics, Objective, Role and Benefits

Name of the Staff :

Version No Date Approved Changes incorporated

01 Sem. (I) 2022/2023

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